Agro sector gets Rs 2.83 lakh crores: Union Budget 2020

Union Finance Minister Nirmala Sitharaman presented the Budget 2020 on Saturday that focused on raising the purchasing power by cutting income tax rates and boosting rural income. AgroSpectrum highlights the key points for agriculture sector in Union Budget 2020.

source-public domain

source-public domain

Agri-credit target for the year 2020-21 has been set at Rs 15 lakh crore.

Government to incentivise farmers to go solar. Over 6 crore farmers under Pradhan Mantri Fasal Bima Yojna have been insured. Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM KUSUM) to be expanded, providing 20 lakh farmers in setting up standalone solar pumps. Government have provided energy sovereignty through KUSUM and input sovereignty through Paramparagat Krishi Vikas Yojana .Government have provided resilience for 6.11 crores farmers insured under PM Fasal Bima Yojana. Focus on cultivation of pulses, expansion of micro-irrigation through Krishi Sinchai Yojana, have raised the self-reliance of the country. 

Viability Gap Funding for efficient warehouses

India has an estimated capacity of 162 million MT of agri-warehousing, cold storage, reefer van facilities etc.  NABARD will undertake an exercise to map and geo-tag them.  In addition, we propose creating warehousing, in line with Warehouse Development and Regulatory Authority (WDRA) norms. Our government will provide Viability Gap Funding for setting up such efficient warehouses at the block/taluk level.  This can be achieved, where States can facilitate with land and are on a PPP mode. Food Corporation of India (FCI) and Central Warehousing Corporation (CWC) shall undertake such warehouse building on their land too.

Dhaanya Lakshmi- Village storage scheme

As a backward linkage, a Village Storage scheme is proposed to be run by the SHGs.  This will provide farmers a good holding capacity and reduce their logistics cost.  Women, SHGs shall regain their position as “Dhaanya Lakshmi”.

Kisan Rail

To build a seamless national cold supply chain for perishables, inclusive of milk, meat and fish, the Indian Railways will set up a “Kisan Rail” – through PPP arrangements. There shall be refrigerated coaches in Express and Freight trains as well.


KrishiUdaan will be launched by the Ministry of Civil Aviation on international and national routes. This will immensely help improve value realisation especially in North-East and tribal districts. Krishi Udaan scheme aims to transport agri products to national as well international destinations to be launched.


Promoting Horticulture

Horticulture sector with its current produce of 311million MT exceeds production of food grains.  For better marketing and export, we propose supporting States which, adopting a cluster basis, will focus on “one product one district”.

Integrated farming systems in rain fed areas

Integrated farming systems in rain fed areas shall be expanded. Multi-tier cropping, bee-keeping, solar pumps, solar energy production in non-cropping season will be added. Zero-Budget Natural Farming (mentioned in July 2019 budget) shall also be included.  The portal on “Jaivikkheti” – online national organic products market will also be strengthened.


 NABARD re-finance scheme

Financing on Negotiable Warehousing Receipts (e-NWR) has crossed more than`6000crore. This will be integrated with e-NAM.  Non-Banking Finance Companies (NBFCs) and cooperatives are active in the agriculture credit space.  The NABARD re-finance scheme will be further expanded.  Agriculture credit target for the year 2020-21 has been set at ` 15 lakh crore. All eligible beneficiaries of PM-KISAN will be covered under the KCC scheme.

Facilitate doubling of milk processing capacity

Government intends to eliminate Foot and Mouth disease, brucellosis in cattle and also peste des petits ruminants (PPR) in sheep and goat by 2025.  Coverage of artificial insemination shall be increased from the present 30% to 70%. MNREGS would be dovetailed to develop fodder farms. Further, we shall facilitate doubling of milk processing capacity from 53.5 million MT to 108 million MT by 2025.

 Blue Economy

 Our government proposes to put in place a framework for development, management and conservation of marine fishery resources. 

Sagar Mitras & Fish Farmer Producer Organisations

Youth in coastal areas benefit through fish processing and marketing.  By 2022-23, Government propose raising fish production to 200 lakh tonnes. Growing of algae, sea-weed and cage Culture will also be promoted.

Our government will involve youth in fishery extension through 3477 SagarMitras and 500 Fish Farmer Producer Organisations. We hope to raise fishery exports to ` 1 lakh crore by 2024-25. 





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